Recently asked questions relating to Stafford Railway Building Society transfer of equity
- My Stafford Railway Building Society home loan we jointly entered into with ex, who has agreed to come off the mortgage and let me have the property. Stafford Railway Building Society have consented to the transfer of equity to me solely. Do Stafford Railway Building Society write my company to verify my salary?
- Have recently separated from my ex of thirty years. I'm now back with my mum and dad and she wants to stay in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the mortgage with Stafford Railway Building Society? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- Me and a friend got a joint mortgage with Stafford Railway Building Society on a property in 2013. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Would there be any potential problem with Stafford Railway Building Society with him being responsible for the total loan as opposed to only half of it?
- At what stage do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is taking place simultaneously with a switching mortgage via Stafford Railway Building Society?
- What are the average solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Stafford Railway Building Society - and have been quoted £350 including VAT by Stafford Railway Building Society's appointed conveyancer, Is this is a good price or not?
- What is the process for having a person removed from the deeds to a house where the mortgage is with Stafford Railway Building Society
- The mortgage broker has recommended their lawyer for my Transfer of Equity plus remortgage with Stafford Railway Building Society - won’t it be easier to just use them?
Information that may be required from your lawyer could ask regarding your Stafford Railway Building Society Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has consent been obtained from Stafford Railway Building Society to the proposed transfer of equity?
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
General Advice to read in in addition to the above Stafford Railway Building Society transfer of equity Questions and Answers :
Tax and Legal
There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Stafford Railway Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
Indemnity Insurance
If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your lawyer will check with Stafford Railway Building Society This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back
what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects
lenders such as Stafford Railway Building Society or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Stafford Railway Building Society.
Preparing the Transfer of Equity with a Stafford Railway Building Society Mortgage
When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Stafford Railway Building Society is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable
if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’
On form AP1, your conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.
